Bitcoin trades at highest level since early February

The world’s largest cryptocurrency was last up 4% to $78,586.2

Bitcoin on Wednesday traded at its highest level since early February and briefly topped $79,000, after the U.S. president extension of a ceasefire with Iran boosted risk appetite.

The world’s largest cryptocurrency was last up 4% to $78,586.2 at 21:30 GMT, after earlier rising to a session high of $79,446.3. It was set for a third straight day of gains.

Bitcoin is increasingly behaving as a hybrid asset, drawing inflows during periods of easing tensions and as a hedge during geopolitical uncertainty. Technically, $80,000 is the next significant resistance level, and the daily MACD suggests moderate upside momentum, David Morrison, senior market analyst at Trade Nation, said.

Just minutes after the closing bell on Wall Street on Tuesday, the U.S. president announced an indefinite extension to an ongoing two-week ceasefire with Iran, saying it was partly driven by requests from Pakistani officials seeking more time for peace negotiations in Islamabad.

White House Press Secretary Karoline Leavitt on Wednesday told reporters that the president chose to extend the ceasefire because it’s Iran who needs to get their act together. Meanwhile, the U.S. president told the New York Post that more talks were “possible” as early as Friday.

Iran, for its part, kept up a harsh public rhetoric, with state media saying Tehran had decided not to join any new round of talks with the U.S., citing Iran’s foreign ministry spokesperson. State media also said Iran had not yet announced an official position on the extension of the ceasefire.

Despite the ceasefire extension, tensions have not fully abated. The U.S. has maintained a blockade on Iranian ports, while disruptions around the Strait of Hormuz continue. Exacerbating the situation, three ships were attacked by Iran near the strait, according to Iran’s state media and shipping monitor UK Maritime Trade Operations Centre.